One of the challenges of establishing an ERISA-compliant retirement plan is determining who does what. For example, ERISA 3(16) refers to the section of the Employee Retirement Income Security Act of 1974 that establishes the role of the plan administrator. In Part I of this discussion, we described how the importance of the PA role starts to take shape when we look at the responsibilities involved in ERISA. For more detail into the tasks that this person is required to perform, we have created a list of key services that are often included in a typical 3(16) arrangement with a brief overview from the plan sponsor perspective. In short, hiring an outsourced plan administrator to do a job that can be handled by a third party administrator is unnecessary and even redundant.

(Please note that we use the terms "Plan Administrator," "PA," "3(16) Administrator," etc. interchangeably.)

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